Debts from gambling: The way forward

[Perpetual]

I am not expecting any sympathy as I completely accept that our situation is completely my own doing.

I have had a long-term gambling addiction and have gotten my wife and I into an impossible situation.

I'd welcome any guidance from others who are / have been in a similar position.

 

I've found some similar stories but none that include running a business. I am getting help and I am desperately trying to control my illness.

 

My wife and I run a Ltd company that has paid the bills for the last 2 x years.

It could be so much better but I have driven it into the ground through gambling.

It could have been amazing.

It still can if I can keep my recovery up.

 

We have a house which we have had to rent out and we are living with my sister.

Our house is borderline negative equity.

Our tenant leaves next month and I think we will be unable to pay the mortgage.

 

We have already had a 4 month agreed payment reduction.

We have an outstanding debt for the 4 month period of approx £2300.

We have not informed them that we are renting it out.

Our mortgage is interest only and is fixed until April 2013.

The payments are £860 per month.

We are still trying to find a tenant for November onwards.

 

My wife took out a £13k loan to bail us out a year ago.

Business dried up and we were unable to make the payments 6 months later.

They agreed to 6 months without payments and froze the interest / action on the account until this month.

They are awaiting our contact.

We also have £900 outstanding overdraft with them.

 

I owe my sister £7500.

I pay her £500 per month.

This is my priority debt as we live in her house.

 

We have a tax bill of around £2500 to pay at the end of November.

 

Our business can bring in around £3000 per month gross.

I am sick and have repeatedly gambled it away.

 

Our monthly bills are around £700 including food.

This leaves around £1300 to pay everyone else and this is clearly not enough.

I have spoken with the National Debtline,

Business Debtline and I am scared by some of the advice as I could, potentially go to prison for the way I have conducted the business.

 

I should be man enough to accept what I have done and the consequences but I am so ashamed,

guilty for dragging my amazing wife through this and frightened that, for once, I am unable to fix things.

I am still trying though.

 

My wife knows the whole situation and I am lucky that she still loves the part of me that doesn't gamble.

 

I am working on my addiction but would really appreciate any help from those who can offer advice

about what I need to do sort out our finances aside from stop gambling.

 

Thanks so much in advance

Edited September 27, 2012 by Perpetual

[Bombaymix]

Hi perpetual. Hats off to you for realising and admitting your illness before it was too late.

 

I'm sure the regulars will be along shortly with some words of advice.

 

Hang in there.

 

Best wishe to you and your family.

 

BM

[dx100uk]

hi welcome aboard.

 

you've already made the first major step by posting here.

 

i admire you totally.

 

i really do hope you get help from us.

 

dx

[havinastella]

Hi Pert and welcome to CAG!

 

To be brutally honest, your priority debt is your mortgage, not your sister. What are the tenants paying now and could you get tenants in to cover the mortgage?

 

The rest of your figures don't make sense to me (but it is late )

 

You have 3K coming in (+ the tenants money?) What is the full breakdown?

 

What is the full breakdown for the month?

 

And kudos to you.

 

Jogs

[Perpetual]

Thanks for the replies. Our tenants are moving out next month so we won't have that income towards the mortgage. I appreciate that this would normally be our priority debt however I feel our stay with my sister would be untenable if we didn't repay her debt as the priority.

 

All advise is welcome.

[brokebutnotbeatn]

I know it is hard but your sister is NOT a priority debt as you are under moral, but no legal obligation. Your hole will get deeper if you do not pay your mortgage. You need to pay your mortgage and agree a payment plan for your tax. Hopefully you will find tenants too. However, you can move back into the house whilst you discuss your options (sale) with the mortgage company - but you must then arrange council tax. Stick with the National and Business Debt line as they are well placed to give you sound advice however scarey it is to hear. Take one day at a time but make sure you achieve at least 1 key objective a day - whether that is to chase the letting agent's, write a letter, talk with your sis about the issues and what you are doing...goals are important to get through this particularly with an adiction such as yours so they need to be attainable. Also I assume you are getting help from your GP and local support groups? GL.